Sub-contractors corruption

BAE [BAE's position] has been the main contractor on the al-Yamamah deals [profile] since the mid-1980s. Many other UK companies receive work as sub-contractors.

However it is evident that commissions have been paid by these sub-contractors as well.

· In 1994, executives from defence contractor Thorn EMI disclosed on the World in Action TV series that the company paid a total of 26% in commissions to supply electronic bomb fuses worth £40m under the Saudi contract. Half of the £10m commission went to the company's regular Saudi agent. The other half was paid to an offshore Bermuda account in the name of Beaverpride, a Preston-based agency run by Michael Gay, a former BAE employee. Gay would not say what the money was for.

·In 1997, a former executive for Royal Ordnance, David Trigger, testified in court that commissions were also paid on the supply of the 1000lb bombs themselves. He said the amounts were concealed under the Official Secrets Act. [Guardian 23 June 1997]

·In 1998, Tornado engine manufacturer Rolls-Royce was disclosed to have paid £23m as an 8% commission to an anonymous Panama entity, AEDC, controlled by members of the Ibrahim family, the favoured in-laws of King Fahd. The Ibrahims sued for a claimed 15 % until the matter was hastily settled out of court.

Sign up for the Guardian Today

Our editors' picks for the day's top news and commentary delivered to your inbox each morning.